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Group Long Term Disability (LTD)
Group Long Term Disability (LTD) is an
employer sponsored benefit designed to assist an employee replace income
lost as a result of a disability.
The goal of a well designed LTD plan is to replace that
portion of an employee's lost income that approximates the employee's
pre-disability take home pay.
While we do see some plans designed to replace as little
as 50% of gross income, this is probably not realistic since most employee's
living expenses exceed this figure. Most commonly, plans are
designed to replace 60% to 66% of gross income, including any income received
from NY State DBL, Workers Compensation, or Social Security Disability
Benefits.
| Benefit Duration |
Benefits are usually payable to age 65 or normal
retirement age. |
| Elimination Period |
Benefits are usually payable after 30, 60, 90,
or 180 days of disability |
| Maximum Covered Salary |
Frequently, highly compensated executives will
discover that only a portion of their income is covered under the
LTD Plan. Supplemental Executive Plans must then be implemented
to augment the Executives group LTD benefit. |
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